With Tesla and the EV Market In Disarray, Is Top Lithium Stock Albemarle A Buy For 2023?
The global economy -- as well as Tesla (NASDAQ: TSLA) CEO Elon Musk's distraction running Twitter -- has sent the fast-growing electric vehicle (EV) market into chaos. With inflation eating into consumer budgets for over a year now, demand for new vehicles is faltering. Then there's turmoil in the largest market for EVs, China. China's economy is reeling as it has brought an end to its zero-COVID-19 policy and is now dealing with record infection rates -- which is translating into feared lower demand for vehicle spending. EV manufacturer stocks have tanked as a result.
Top lithium producer Albemarle (NYSE: ALB) hasn't been spared from the pain either. Up until the final weeks of 2022, the company was weathering the bear market just fine, thanks to soaring lithium prices. But with EV demand now in question for the new year, is Albemarle stock in trouble?
The investor community has been fixated on EV manufacturer stocks for years, and for good reason. Tesla has had an incredible run and has completely turned the legacy auto industry on its head -- and perhaps (eventually) for the better. While making an electrified vehicle takes big up-front technological investment, they could be the key to higher profit margins for legacy automakers later on down the road.
Source Fool.com
